Langsam, Inc

question 49

Essay

Langsam, Inc. has used a decentralized form of organizational structure for the past five years. The controller, Ms. Terrance, has noticed that some of the divisions are still using fixed assets that are fully depreciated and that there has been little acquisition activity in these divisions. Coupled with this are very high ROIs, especially when compared to the other divisions that seem to have a regular program of disposition and replacement of fixed assets.
She takes her concerns and observations to the Financial Vice President who says he will review her findings and look into the problem.
Required:
What are the potential negative effects of decentralization?

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Definitions:

Antidepressant

A medication designed to alleviate symptoms of depression by adjusting chemical imbalances of neurotransmitters in the brain.

Prozac

A brand name for fluoxetine, an antidepressant medication used in the treatment of depression, obsessive-compulsive disorder, and several other mental health conditions.

Nardil

A brand name for phenelzine, a medication used primarily in the treatment of depression by inhibiting the breakdown of monoamine neurotransmitters.

Tricyclic

A type of antidepressant medication used to treat depression by affecting neurotransmitter levels in the brain.